International Trade and Intertemporal Substitution

摘要: This paper studies the role of international trade delivery lags and variation in intertemporal marginal rate substitution accounting for puzzling features cyclical fluctuations of international volumes. Our insight is that, because time-intensive, variation at which agents are willing to substitute across time affects how volumes respond changes output prices. We calibrate our model match key of U.S. data discipline intertemporal marginal using asset price data. find that quantitatively consistent with U.S. import fluctuations.